SB-0052, As Passed House, March 2, 2006

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 52

 

 

January 25, 2005, Introduced by Senator BARCIA and referred to the Committee on Economic Development, Small Business and Regulatory Reform.

 

 

 

 

 

 

     A bill to amend 2000 PA 146, entitled

 

"Obsolete property rehabilitation act,"

 

by amending section 2 (MCL 125.2782).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Commercial housing property" means that portion of real

 

property not occupied by an owner of that real property that is

 

classified as residential real property under section 34c of the

 

general property tax act, 1893 PA 206, MCL 211.34c, is a multiple-

 

unit dwelling, or is a dwelling unit in a multiple-purpose

 

structure, used for residential purposes. Commercial housing

 

property also includes a building or group of contiguous buildings

 

previously used for industrial purposes that will be converted to a


 

multiple-unit dwelling or dwelling unit in a multiple-purpose

 

structure, used for residential purposes.

 

     (b) "Commercial property" means land improvements classified

 

by law for general ad valorem tax purposes as real property

 

including  real property  buildings and improvements assessable as  

 

personal  real property pursuant to sections 8(d) and 14(6) of the

 

general property tax act, 1893 PA 206, MCL 211.8 and 211.14, the

 

primary purpose and use of which is the operation of a commercial

 

business enterprise. Commercial property shall also include

 

facilities related to a commercial business enterprise under the

 

same ownership at that location, including, but not limited to,

 

office, engineering, research and development, warehousing, parts

 

distribution, retail sales, and other commercial activities.

 

Commercial property also includes a building or group of contiguous

 

buildings previously used for industrial purposes that will be

 

converted to the operation of a commercial business enterprise or a

 

multiple-unit dwelling or a dwelling unit in a multiple-purpose

 

structure, used for residential purposes. Commercial property does

 

not include any of the following:

 

     (i) Land.

 

     (ii) Property of a public utility.

 

     (c) "Commission" means the state tax commission created by

 

1927 PA 360, MCL 209.101 to 209.107.

 

     (d) "Department" means the department of treasury.

 

     (e) "Facility", except as otherwise provided in this act,

 

means a building or group of contiguous buildings.

 

     (f) "Functionally obsolete" means that term as defined in


 

section 2 of the brownfield redevelopment financing act, 1996 PA

 

381, MCL 125.2652.

 

     (g) "Obsolete properties tax" means the specific tax levied

 

under this act.

 

     (h) "Obsolete property" means commercial property or

 

commercial housing property, that is 1 or more of the following:

 

     (i) Blighted, as that term is defined in section 2 of the

 

brownfield redevelopment financing act, 1996 PA 381, MCL 125.2652.

 

     (ii) A facility as that term is defined under section 20101 of

 

the natural resources and environmental protection act, 1994 PA

 

451, MCL 324.20101.

 

     (iii) Functionally obsolete.

 

     (i) "Obsolete property rehabilitation district" means an area

 

of a qualified local governmental unit established as provided in

 

section 3. Only those properties within the district meeting the

 

definition of "obsolete property" are eligible for an exemption

 

certificate issued pursuant to section 6.

 

     (j) "Obsolete property rehabilitation exemption certificate"

 

or "certificate" means the certificate issued pursuant to section

 

6.

 

     (k) "Qualified local governmental unit" means 1 or more of the

 

following:

 

     (i) A city with a median family income of 150% or less of the

 

statewide median family income as reported in the 1990 federal

 

decennial census that meets 1 or more of the following criteria:

 

     (A) Contains or has within its borders an eligible distressed

 

area as that term is defined in section 11(u)(ii) and (iii) of the


 

state housing development authority act of 1966, 1966 PA 346, MCL

 

125.1411.

 

     (B) Is contiguous to a city with a population of 500,000 or

 

more.

 

     (C) Has a population of 10,000 or more that is located outside

 

of an urbanized area as delineated by the United States bureau of

 

the census.

 

     (D) Is the central city of a metropolitan area designated by

 

the United States office of management and budget.

 

     (E) Has a population of 100,000 or more that is located in a

 

county with a population of 2,000,000 or more according to the 1990

 

federal decennial census.

 

     (ii) A township with a median family income of 150% or less of

 

the statewide median family income as reported in the 1990 federal

 

decennial census that meets 1 or more of the following criteria:

 

     (A) Is contiguous to a city with a population of 500,000 or

 

more.

 

     (B) All of the following:

 

     (I) Contains or has within its borders an eligible distressed

 

area as that term is defined in section 11(u)(ii) of the state

 

housing development authority act of 1966, 1966 PA 346, MCL

 

125.1411.

 

     (II) Has a population of 10,000 or more.

 

     (iii) A village with a population of 500 or more as reported in

 

the 1990 federal decennial census located in an area designated as

 

a rural enterprise community before 1998 under title XIII of the

 

omnibus budget reconciliation act of 1993, Public Law 103-66, 107


 

Stat. 416.

 

     (iv) A city that meets all of the following criteria:

 

     (A) Has a population of more than 20,000 or less than 5,000

 

and is located in a county with a population of 2,000,000 or more

 

according to the 1990 federal decennial census.

 

     (B) As of January 1, 2000, has an overall increase in the

 

state equalized valuation of real and personal property of less

 

than 65% of the statewide average increase since 1972 as determined

 

for the designation of eligible distressed areas under section

 

11(u)(ii)(B) of the state housing development authority act of 1966,

 

1966 PA 346, MCL 125.1411.

 

     (l) "Rehabilitation" means changes to obsolete property other

 

than replacement that are required to restore or modify the

 

property, together with all appurtenances, to an economically

 

efficient condition. Rehabilitation includes major renovation and

 

modification including, but not necessarily limited to, the

 

improvement of floor loads, correction of deficient or excessive

 

height, new or improved fixed building equipment, including

 

heating, ventilation, and lighting, reducing multistory facilities

 

to 1 or 2 stories, <<                           >> adding additional

 

stories to a facility <<OR ADDING ADDITIONAL SPACE ON THE SAME FLOOR

LEVEL NOT TO EXCEED 100% OF THE EXISTING FLOOR SPACE ON THAT FLOOR LEVEL>>, improved structural support including

 

foundations, improved roof structure and cover, floor replacement,

 

improved wall placement, improved exterior and interior appearance

 

of buildings, and other physical changes required to restore or

 

change the obsolete property to an economically efficient

 

condition. Rehabilitation shall not include improvements

 

aggregating less than 10% of the true cash value of the property at


 

commencement of the rehabilitation of the obsolete property.

 

     (m) "Rehabilitated facility" means a commercial property or

 

commercial housing property that has undergone rehabilitation or is

 

in the process of being rehabilitated, including rehabilitation

 

that changes the intended use of the building. A rehabilitated

 

facility does not include property that is to be used as a

 

professional sports stadium. A rehabilitated facility does not

 

include property that is to be used as a casino. As used in this

 

subdivision, "casino" means a casino or a parking lot, hotel,

 

motel, or retail store owned or operated by a casino, an affiliate,

 

or an affiliated company, regulated by this state pursuant to the

 

Michigan gaming control and revenue act, the Initiated Law of 1996,

 

MCL 432.201 to 432.226.

 

     (n) "Taxable value" means the value determined under section

 

27a of the general property tax act, 1893 PA 206, MCL 211.27a.